take out the cabinets above the island.

change the fan, to a smaller, 44 inch and flush mount it. buy the peel and stick back splash from lowes or home depo. maybe paint the island on this side .

Is it for getting the house for sale or will you continue to live there? Do you have a white fridge? Since both the range hood and dishwasher are white, perhaps a white range will make unify the kitchen as well as make it brighter looking. You don't necessarily need to get a brand new stove - a "scratch and dent" place could save you a lot of money (if the scratch/dent is on the side of the stove, you won't even see it), or check out your local Habitat for Humanity Re-Store.

If you want to keep the cabinets above the half-wall, I would at least install some under cabinet lights (and in other areas as well, electrical permitting). New hardwares on the cabinets/drawers would make a huge difference, too.

Also, replace the existing counter top (laminate, I assume) with a new one, it would make it look fresher. If budget does not allow for solid/quartz/etc., laminates have come a long way - so go ahead and replace it with another laminate.

I have no experience with Rustoleum cabinet kit and cannot comment on that.

something like this...

On a budget, I would invest in quartz or travertine countertops and change the room color to a deep green or blue. Get a black panel for the dishwasher.

Have you settled on a budget?

All good suggestions so far:

Instead of taking cabinets darker, I think I would change hardware to something nickel toned/stainless and transitional and use scotts liquid gold on them and step back and look again. They have a kind of cool mid-century vibe. Espresso is on its way out, so don't go there unless you guys just love it - you will lose the neat detailing on the doors with such a dark finish. If you were going to live there awhile, and knew it was right for you these cabinets would be totally radically wonderful as a color with a bit of wash to bring out those grooves and edges - the aformentioned blue green with some antiquing just at the corners and details would be wicked. Rustoleum has good color products - that would be a reason to use the kit if they have a color you like. You could also pull off red or kitchen green with the white appliances and neutral floor. It needs to be a color you both love and can live with as a centerpiece of your public rooms for a while, but a colorful kitchen is really cheerful.

Another countertop fix that would require weekend babysitters and a lot of masking off of other areas is to use ardex to make the countertops concrete finished. Look at younghouselove.com for some very experienced DIY'ers use of it - it isn't for the amateur without lots of research. http://www.younghouselove.com/2014/03/trying-our-hand-at-ardex-concrete-counters/

Butcherblock countertops are another option that don't break the bank - the home stores carry them by the foot. Great with colored cabinets.

New light fixture and pull down sink fixture would make a world of functional difference as mentioned above. I would replace/move the fan to the space on the other side of the peninsula and put in a better / more transitional semi flush ceiling fixture to get better lighting in this workspace. Undercabinet lighting can usually be wired back to the outlets adjacent, so that may also be a thing to tackle over time.

Peninsual looks like it would function better with some added open shelves there below a fairly non-functional eating bar. Unless you have room to expand that - fill it in with shelves and baskets for linens and baskets for hiding toys (you have a helper whose walker I spied!)

Good suggestion about a new white stove - wonderful you have gas and a large window. Pulling the cabinets over the peninsula down might be tough but it will totally update the space in a good way.

Thanks for all the good ideas. We are just updating not getting ready to sell. Question on the back splash, should it go around the entire kitchen or just above stove and the area between mircrowave?

Take a look at a similar-shaped kitchen on younghouselove.com and what they've done with just paint and some minor cabinet modifications...might be good inspiration for you. :)

Appliances don't matter until the other stuff is done. I prefer to do light cabinets with dark floors or a dark cabinet with light floors. In this house I would take out the cabinets over the island. I would do lighter floors with dark cabinets

It is best all around, though for a kitchen this size, I'm going to weigh in against a busy mosaic. Something white and clean to pick up the white appliances might be best - a classic subway is always right.

#1 Remove the cabinet above the bar, like you haven't heard that before:), it is the best thing you can do for that space. Redo the cabinets in espresso, use nickel for handles and pulls. New stone counter tops, go light, dark and dark is a bad combination in kitchens. Be very careful on the backsplash, with dark cabinets, you don't want it to be too busy, go for the larger pieces of tile/glass for the backsplash. Get several samples of what you think you like and set them up and take a look. I'm not a fan of uber white subway tiles with espresso cabinets. Get rid of the ceiling fan and find a large flush mount fixture or low hanging chandelier. Use LED bulbs for maximum brightness. Install two or three pendant lights over your new breakfast bar.

That fan will give you no light, I say.

The most expensive in the kitchen are cabinets and appliances. Refacing or professionally painting can be cheaper if they are good cabinets and in good shape. After market pull outs can improve them. Appliances have a huge range in cost. I would replace the oven for sure. Watch for scratch n dent deals. Keep it under control by leaving the appliances where they are to avoid plumbing gas electrical Etc. Get the uppers over the island down as they really date it. No ceiling fan and pendants.